Kochi: The Directorate of Enforcement (ED) has accused Highrich Online Shoppe Pvt Limited of illegally collecting Rs 1,157 crore from the public under the guise of membership fees for a pyramid scheme disguised as an online grocery business. The ED has taken swift action, provisionally freezing 55 bank accounts holding a total of Rs 212.46 crore linked to the company, its affiliated entities, and its promoters, KD Prathapan and Sreena Prathapan, .
According to the ED’s findings, 98% of the alleged illegal income, amounting to Rs 1,138.11 crore, was funnelled into the company’s own cryptocurrency, HRCC. The remaining Rs 19.21 crore was attributed to the category of grocery pin, as per the ED’s Freeze order.
On January 23 and 24, a team led by SG Kavitkar, Assistant Director of ED’s Kochi Zonal Office, conducted searches at the offices of Highrich Online Shoppe and Highrich Smartech Pvt Limited in Neruvissery, Thrissur’s Arattupuzha.
During the search operation, ED officials interrogated the Chief Operating Officer and the Marketing Manager of Highrich Smartech, Highrich Shoppe, and associated companies about the alleged irregularities. However, no satisfactory explanation was provided by them, as stated in the freeze order.
Meanwhile, fearing arrest in the ED case, Highrich owners KD Prathapan and wife Sreena Prathan have applied for anticipatory bail. Similar cases were registered against the couple previously as well.
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